AAM Metal Forming | Fraser (Detroit), MI
Mission-Critical Infill Industrial | ±65% Below Market | 100% Bonus Eligible
Marketing description
SAB Capital, on behalf of ownership, is pleased to exclusively offer the fee simple interest in a mission-critical single-tenant industrial manufacturing facility located at 18450 Fifteen Mile Road in Fraser (Detroit MSA), Michigan. The property totals 186,443 square feet of rentable area, including 167,068 square feet of specialized industrial space and 18,375 square feet of office space, and is situated on 14.35 acres of land. It is 100% leased to AAM Metal Forming, a division of a division of DAUCH Corporation (NYSE: DCH), a publicly traded global Tier 1 automotive supplier. Strategically located in the Detroit industrial submarket, the facility is embedded in the epicenter of U.S. automotive manufacturing and the leading automotive production hub in the world.
The property is subject to a 25-year absolute NNN lease, with ±11 years remaining in the primary term and two additional five-year options to renew. The lease provides for 2% annual rental increases during the base and option terms, delivering predictable and growing cash flow to investors, and requires no landlord obligations, creating a truly passive ownership structure. The facility itself is highly specialized, housing three cold forging machines valued at approximately $20 million each, making it one of only two locations in the country with this advanced technology. The tenant has further demonstrated long-term commitment by investing over $1 million in 2021 to upgrade the property, including a new TPO roof, HVAC replacements, an advanced ventilation system, LED lighting, and AI-driven operational systems.
This offering represents a rare opportunity to acquire a long-term, passive industrial investment in a premier U.S. manufacturing hub. With its mission-critical infrastructure, absolute NNN lease structure, 2% annual increases, and in-place rent far below market, the property combines durable cash flow with intrinsic real estate value.
Investment highlights
- Price Guidance: $8,000,000 \ NOI: $492,015 ($2.64/SF)
- AAM Rebrands as Dauch
- In January 2026, American Axle & Manufacturing completed a corporate rebranding to Dauch Corporation, ahead of the anticipated February 2026 closing of its merger with Dowlais Corp.
- Generational wealth preservation vehicle
- Passive and depreciable bond-like income stream with intrinsic real estate value and mark-to-market potential (+/-65% below market rent)
- Eligible for bonus depreciation, forecasted at $2MM+ of Year 1 write-off
- Tier 1 automotive supplier with two reporting segments: (1) Driveline and (2) Metal Forming
- Metal Forming unit delivers high-pressure die casting and powder metal technologies for lightweight, high-precision components
- Fraser facility houses three cold forging machines, making the location extremely mission-critical
- AAM has discussed potential future expansion at the site, with three-phase plans totaling ~118,000 SF - Contact SAB
- New TPO roof installed in late 2021; facility has been continuously modernized and well maintained
- In 2025, AAM agreed to merge with Dowlais in a $1.44B transaction, expected to double revenue and unlock $300MM in cost synergies
- In September 2025, AAM raised $2.1B through a two-part bond issuance to finance the Dowlais acquisition and refinance near-term maturities, extending debt out to 2033
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